CPI ( Consumer Price Index ) + WPI (Wholesale Price Index):
Both are Price index – Measure changes in price of critical commodities used everyday in an economy (Some index like Index of 8 Core Industries & Index Industrial Production tracks quantity).
Difference – CPI tracks price changes upto consumer level(i.e Retail). WPI tracks price changes upto wholesale level (One level before retail, Hence goods sold in bulk considered here)
While WPI tracks price changes of goods only, CPI tracks price change of both goods and services.
WPI – Office of Economic Advisor, Ministry of Commerce & Industry
CPI – Central Statistical Organisation, Ministry of Statistics & Program Implementation
Categories under WPI (Total 100%):
1)Primary articles – 20.12%
2)Fuel,electricity,Lubricants etc – 14.91%
3)Manufactured products – 64.97%
Categories under CPI (based on the Consumer Expenditure Survey (CES) of 2011-12):
1)Food,Beverages & Tobacco (Highest contribution)
2)Fuel & Light
4)Clothing,bedding & Footwear
5) Miscellaneous (2nd highest contribution)
Base year :
Purpose of Both: Both tracks price changes. If High figures are given by these indices, that suggest inflation, which can be cruel some to both residents and ruling party.